topic North Carolina Highway Use Tax in Deductions & credits

North Carolina Highway Use Tax

Aptexas — Tue, 24 Feb 2026 07:58:46 GMT

The Highway Use Tax says it's paid when you transfer a title. It's in lieu of sales tax. Is this just a one time fee, or paid annually when you renew your registration? Moving to NC and have to transfer the title there so trying to understand it.

Re: North Carolina Highway Use Tax

DoninGA — Tue, 28 Nov 2023 17:06:59 GMT

In 1989, North Carolina switched from a traditional vehicle sales tax to a Highway Use Tax (HUT), a one-time charge imposed any time a vehicle title is transferred in the state (in this way, the HUT can be considered an alternative vehicle sales tax).

North Carolina website - https://ncchamber.com/2020/09/28/the-state-of-transportation-funding-in-nc-understanding-the-highway-use-tax/

Re: North Carolina Highway Use Tax

NCperson — Tue, 28 Nov 2023 18:43:56 GMT

@Aptexas while it is a one-time tax, you will also pay property tax on the vehicle. The rate is dependent on which county you live in.